Sunday, August 25, 2013

Home Loan Balance
Transfer is a product which is always in customer's court and which has
the capacity to save considerable amounts in terms of Interest that is
being paid on a Home Loan Account. Banks usually change the tenure when
there is a change in interest rate which make the principal component in
the EMI very less. If the tenure crosses 300 months then banks raise
the EMI amount and it definitely benefit the customer but increased EMI
will be a additional burden in repayment. To clear all
these hassles to customer banks have designed this Home Loan Balance Transfer product which can
give the flexibility of shifting your home loan account to some other
bank which is giving lower interest rates and benefits. It is quite like
other home loans where customer need to submit all his personal, income
and property documents to the bank to which he would like to transfer
his loan. The banks processes all the details and releases the
outstanding loan amount along with pre closure charges if any to the
previous bank directly. Banks will receive all the original documents that are mortgaged for the home loan availed directly.Banks
provide the option of availing different other products along with
Balance Transfer. The additional products are Mortgage or Construction.
Customer should have income eligibility and the property valuation
should support to complete the Balance Transfer and the additional
product amount to be disbursed. This product is available to the
Resident Salaried individuals, Resident Self Employed Individuals and
NRI Salaried Individuals.

Thursday, August 8, 2013

Mr. Kranthi Mohan a leading bank’s customer
has filed a case against his home loan funded bank about not revealing complete
details of repayment structure which affected him badly in the situation where
he is not able to repay the home loan EMI’s in time due to job loss. Most of
the customers who apply for home loans in Bangalore are always in a hurry to
close the process with the pressure of the builder for their payment schedule.

A home loan is a product which banks offer
customer to purchase a property with simple and affordable EMI’s with a maximum
repayment period of 20 years. Home loans in Bangalore have seen a steep raise
in their business with the increase in purchases of real estate properties. But
having complete knowledge is most important than completing the process in
time. Lets see where all the customers do mistakes when it comes to home loan
and resolve the issues for hassle free process who wish to go for a loan to own
their dream house

A home loan application will have two
applicants in which most of the people feel and believe that co-applicant is
not liable of repayment when only applicant income is considered. A
co-applicant is equally liable as applicant even his/her income is considered
or not. Now lets see the cases when the interest rates are going up, in this
case a customer can opt for Fixed Rate of Interest by paying switching fee from
Floating to fixed which can save considerable amount to customer. Banks will
increase the tenure initially when there is a change in interest rates and when
the repayment period crosses 300 months then banks increase the EMI. Customers
can opt for increase in EMI amount at any point during the tenure which in turn
reduces the repayment period thus reducing the interest paid to bank.

All banks/financial institutions offer Home
loan linked life insurance with one time premium which cover the applicant’s
life again the home loan. If any risk occurs to the applicant then the complete
loan will be cleared by the insurance company and the documents will be
released to co-applicant. All the customers are suggested to opt for Home loan
linked insurance which is a cover in difficult situations.

Banks provide customers of some facilities like
switching the home loan to other bank for better interest benefits, pre closing
the loan, making part payment towards the home loan account amount of which
will directly deducted from principal amounts, interest rates switching, Income
Tax benefits on interest paid amounts etc. A simple ground work on these things
will save huge amount which a customer pay due to lack of knowledge on the
products.

Wednesday, February 13, 2013

A payment Amortization Calculatoris
a thingthat individuals will use to be able to figure out what the periodic payment will probably beon the loan and in many cases
a home loan or mortgage loan. This calculation is based upon the amortization methodand willconsidera variety ofdistinctive figures like
theinterest and principal payments to be made designed on every single repayment. Also this distinct calculator is capable
to help you produce a full payment schedulefor theexistenceof
the loan and provide you with data relating to the principal and interestthat couldhave
to have to be paidon theonce a month or yearly
foundation.

The good news isfor you
personallythere are lots of online payment amortization calculators availablewhich are able to help you weigh up a variety ofvariouspossibilitiesyou
might have with regard to loans and canhave the ability to provide you with payment specifics accordingly. In order to get aproper figure you
will want to input the mortgage loan total, the interest ratetogether with how extendedyou
wish the termon the mortgage loan to be for. The moment this facthas
become input then the payment
amortization calculator will then supply you by using a table
which tells you how much in the
loan is receivingcompensated off and it will help you to understand just how you might behaving to pay the mortgage loan off. As you will shortly see that from
the table providedby the payment amortization calculator the once a monthrepayments will modifyabout the everyday livingin the loan. Inside thebeginningmost ofthe moneythat
you simplypay outso as to repay the loan goes in the direction of covering the interestpaymentsand then as time
elapses much moreof thecash will then go into paying out off the principal part in the loan (the genuine loan
totalyouat first took out) as well as a
much scaled-down part of any
payment then addresses the curiosityprices.

An amortization calculator can help you to obtain out just which home you canmanage. This instrumentcan belocatedin aamount ofways but make
surewhich youobtainthesewhich areofferedabsolutely free use on mortgage lender's sites. The objective is to use them to help you to know just how much you
canpay outwith your mortgage loan.

By using a loan Amortization Calculator, all you
will need to do is input some straightforward figures relating to the quantity of the loan, the sizeof the repayment period of time,
the frequency of paymentsalong
with theinterestwhich isgetting charged. The
calculator will then do the rest
and offer you a trusted indication within your repayments. If your loan might bemanufacturedmaking
use ofa mixture of balloon, or bullet, payments and amortization repayments, this ought to also taken into considerationwhile in the calculation.

Wednesday, January 9, 2013

Eligibility
calculation is one of the important aspects of home loan processing. Banks
calculate home loan eligibility of each and every customer who applied for a home loan by
taking applicant and co-applicants income into consideration before giving a
sanction letter to the customer. A little idea on how this eligibility is
calculated will make much difference in the process of home loan.

The
process of eligibility calculation varies from customer to customer depending
on the income source. If the customer is a salaried customer then the sum of
regular components of salary is taken into consideration along with 50% of the
variable pay for the calculation of eligibility. If the co-applicant income is
also considered then the same principle will be applicable to the co-applicant
also. After arriving at a component both the applicant incomes is added and
take a maximum of 60% of the salary for the contribution of home loan EMI. If
any liabilities are there then the component of their EMI will be deducted from
this amount and on the remaining amount the eligibility is calculated by
dividing the amount with the per lace EMI component of the home loan interest rate charged for the desired tenure or
applicable tenure which results the home loan eligibility.

The
Eligibility process is the same for the NRI Salaried also the only difference
is the amount is converted to Indian currency before calculating the
eligibility. The calculation differs a bit for self employed whose gross income
along with depreciation, Interest paid, and remunerations are considered for
the calculation and remaining process is same. The calculated eligibility by
the bank is final. Liabilities that a customer would like to close to avail a
home loan will not be considered as a liability and liabilities below 6 months
are also not considered. Having liabilities will decrease the loan eligibility
and it is always suggestible to close all the liabilities before applying for a
home loan for comfortable repayment of home loan.

Eligibility calculators help you to know how much amount you will be eligible for if you go for a housing loan depending on your requirement. The Eligibility calculators will take all the information about your income and your requirement's then give final eligibility depending on the values provided. The value arrived finally may vary from bank to bank depending on product and tenure considerations.

Saturday, January 5, 2013

Banks
design different products for different needs of customers which are based on
specific needs of ones requirement. It is believed that Construction loan is
the product that suits best to the customers who are looking to avail loan on
the property or vacant land to start construction. The property can be a
constructed house on which developments are proposed or can be an open land. To
avail the loan the customer’s needs to undergo a very simple process which will
give the loan required by the customer?

The
customer needs to avail all the required permissions from the concerned
departments before applying a home loan. The required permissions are Plan of
Construction from the municipal authorities and land regularization approvals
if the land is not regularized or falls under Gram Panchayats. Once the
approvals are availed a construction agreements is to be executed in favor of
the Builder if the construction has been given on contract, if it’s a self
construction then there is no need of any agreements just the property
documents will suffice the requirements.

The
customers need to submit all his Personal documents which proves his/her
identity and provides information about the residential address and income
documents which authenticate the monthly salary received from the employer and
the form-16 which gives the details of the tax deducted by the employer from
the customer’s salary.

Customers are advised to check with the home loan interest rate conveyed to you at the time of applying a home loan with the interest rate mentioned on the sanction letter given by the bank before going for disbursement of loan amount.